Strategic Management - Strategy Formulation
Merger Motives - Mergers and Acquisitions
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Sellers opt for mergers and acquisitions to reduce taxes, to diversify, to restrict working capital financing, for technological synergies, when worthy successor is not there and due to the inability to cope with competition.
Merger Motives
Sellers opt for mergers and acquisitions to reduce taxes, to diversify, to restrict working capital financing, for technological synergies, when worthy successor is not there and due to the inability to cope with competition. Buyers go for mergers to acquire new product or capacities or permanent, or more synergy, to achieve economies of scale, when outside capital is available; there is more control of patents and tax advantages.
Organizations opt for merges with the following motives.
Improving economies of scale
Gaining managerial expertise
Market supremacy
Acquiring a new product or brand name
Diversifying the Portfolio
Reducing risk and borrowing costs
Taxation or investment incentives
Sellers opt for mergers and acquisitions to reduce taxes, to diversify, to restrict working capital financing, for technological synergies, when worthy successor is not there and due to the inability to cope with competition. Buyers go for mergers to acquire new product or capacities or permanent, or more synergy, to achieve economies of scale, when outside capital is available; there is more control of patents and tax advantages.
Organizations opt for merges with the following motives.
Improving economies of scale
Gaining managerial expertise
Market supremacy
Acquiring a new product or brand name
Diversifying the Portfolio
Reducing risk and borrowing costs
Taxation or investment incentives
Tags : Strategic Management - Strategy Formulation
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